House prices unchanged in sluggish February – Nationwide

House price growth remained subdued in February, with prices slightly increasing on a yearly basis but falling on a monthly basis, according to the latest Nationwide House Price Index.

House prices rose to 0.4% in February compared to 0.1% in the previous month on a yearly basis.

Meanwhile on a monthly basis prices dropped 0.1% from a 0.2% rise in January 2019.

As a result, the survey revealed that the average house price decreased to £211,304 in February 2019 from £211,966 in the previous month.

Robert Gardner, Nationwide’s chief economist, said that indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, but survey data suggests that sentiment has softened.

He added: “Measures of consumer confidence weakened around the turn of the year and surveyors reported a further fall in new buyer enquiries over the same period.

“While the number of properties coming onto the market also slowed, this does not appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers in recent months.”

Slower growth and competitive rates

Mark Harris, chief executive of mortgage broker SPF Private Clients, said uncertainty over Brexit continues to have an impact and is likely to for the next few weeks at least.

He said: “On the lending front, the numbers of people owning a home with a mortgage is on the rise as lenders remain keen to lend and rates are extremely competitive. Indeed, several lenders continue to trim rates in an effort to encourage more business, while innovative tweaks here and there are increasing as an alternative to offering the cheapest rate in the market.

“First-time buyers continue to grow in numbers as lenders offer more products at high loan-to-values and the Help to Buy scheme remains popular, despite its critics. This is good news for the market as a whole.”

Kevin Roberts, director of Legal and General Mortgage Club, said that slower house price growth combined with competitive mortgage rates continues to entice buyers, particularly first-timers, who now make up the majority of home purchases bought with a mortgage.

He added: “With their numbers at a 12-year high, government initiatives, such as Help to Buy and shared ownership are helping those who may otherwise be unable to step onto the property ladder.”

“For borrowers, the influx of innovative solutions has provided more choice than ever before, which for some may seem a little overwhelming. By speaking with a mortgage adviser, borrowers can gain a better understanding of the options available and receive tailored advice that is best suited to their needs.”

Increasing home ownership

Nationwide’s Gardner also highlighted that the latest English housing survey from the Ministry of Housing, Communities and Local Government (MHCLG) showed a slight rise in the home ownership rate in 2018 to 63.5% from 62.6% in 2017.

He said: “The rise in home ownership was driven by an increase in the number of people owning their home with a mortgage, which began to increase again after declining continuously since 2005. The number of people owning their own home with a mortgage rose by 5% over the year to 6.9 million, though this is still 20% below the peak recorded in 2000.

“Supportive labour market conditions and a number of policy changes, especially in the regulatory and tax system, have improved the bargaining position of home buyers relative to investors. Government schemes, such as Help To Buy equity loan, have also helped support first time buyer numbers.”

Gardner noted that the biggest improvement in home ownership over the past year has been among those aged 35-44, helping to reverse some of the decline seen in the last few years.

“Nonetheless, at 57 per cent, the home ownership rate among this age group is still well below its 2006 peak of 73 per cent,” he continued.

“The number of households owning their homes outright remained at a record high of 7.9 million. This figure has increased by 1.2 million over the past decade, almost entirely among homeowners aged 65 or above.”

AE3 Media Limited is authorised and regulated by the Financial Conduct Authority
The principal business of AE3 Media is journalism. As our website contains links through to firms which provide consumer credit we have limited permission to undertake credit broking activities and for these limited activities only AE3 Media Limited is authorised and regulated by the Financial Conduct Authority
We take reasonable care to correct errors or omissions on our site as soon as we can after we are made aware of them. However, we do not guarantee that all information is accurate and free of errors and omissions at all times and we do not accept any responsibility or liability for any loss you may suffer as a result of information on this site not being accurate at all times.
We do not recommend or accept any responsibility for any third party provider’s products, services, information, advice or opinions provided to you either directly or via their websites. We will not be responsible to you if any product or advice you obtain form a third party is not suitable for you or does not meet your requirements. Any links to a third party provider’s website on this site are for your convenience only. If you contact a third party provider advertised or mentioned on this website, either directly or via a link, any use by you of the third party provider’s website, products or information will be subject to the third party provider’s own terms and conditions. You should read these carefully.

NEWSLETTER SIGN UP

There is much more to Mortgage Solutions…

For just two more minutes of your time, you can register for premium access

Specialist lending newsletters

Access to exclusive content

Priority event notifications

Business information tailored specifically to your business needs

Engage in interactive commenting and voting in our weekly polls

Specialist Lending Newsletter

You may also be interested in the Specialist Lending Solutions newsletter. All the latest news, analysis and insight from the mainstream residential lending market. Including industry news, adviser business strategy tips and market commentary.

Email address

First name

Surname

Postcode

By submitting your details, you are agreeing to AE3 Media’s privacy and data policy
The data controller is AE3 Media Ltd. We will use your data for the purposes of sending you newsletters from Mortgage Solutions and any other relevant information from Mortgage Solutions such as events, research, feedback, and surveys. You can view the full details by visiting the privacy policy

LOGIN

please sign-in using your email and password

Success....

Please enter your email address and we will email you a link where you can change your password.

Premium access

Register to gain access to MortgageSolutions.co.uk for the latest news analysis, interactive comment, industry video and features, all at your finger tips. Vote in our polls, get your opinion across on the news and watch out for our weekly editorial round-up features.

Delegate places are free of charge, subject to approval by the organisers based on job criteria

Registered delegates have access to the seminars where applicable. You will be given an identification badge, which must be shown upon request.

Once you have registered and your application has been accepted, then you are expected to attend. If you are subsequently unable to attend, please make sure your notice of cancellation is sent at least three weeks prior to the date of the event.

All cancellations must be received in writing. You will receive confirmation of your cancellation. Suitably qualified replacements may be sent if you are unable to attend; however, the organisers must approve them before the event takes place.

Should you be unable to attend, a substitute delegate is always welcome, subject to confirmation by the organisers and on receipt of the change in writing.

AE3 Media reserves the right to change the programme, speakers, dates or venue at any time, without notice. Should for any reason the venue or speakers change, or the event be cancelled due to an act of terrorism, extreme weather, disease control, industrial action, act of God or any eventuality beyond the control of AE3 Media, we shall endeavour to reschedule; but the client hereby indemnifies AE3 Media and holds AE3 Media harmless from and against any and all costs, damages and expenses, including legal fees, incurred by the client.

AE3 Media will not be liable for damage, loss, injury, accident, annoyance, delay or irregularity, which occurs by reason of any act or default committed by any person or company.

UK law shall apply to any claim against AE3 Media and all proceedings shall be within the exclusive domain of the UK Courts.

The signature of the delegate/visitor or his/her duly authorised agent on the registration form shall signify the delegate/visitor's acceptance of the above conditions and the same shall bind both parties to this contract.